After setup
of the Work Breakdown Structure, in the Workstructure worksheet, the Project
Controller has the following basic responsibilities.
q Enter commitments (daily)
q Update expenditures (weekly)
q Identify errors, variances and
unauthorized expenditure
1)
Entering
Commitments
a) Material Requisitions
i)
Material
Requisitions “for inquiry” should not be considered as
commitments, but items should be entered into Mat Reqs worksheet.
ii)
Material
Requisitions “for purchase” shall be entered into the Mat Reqs worksheet, and
linked to the Workstructure worksheet - commitment and expenditure.
iii)
Each
item should be entered but with simple description – a full description is not
required
iv)
All
MR’s “for purchase” must be provided with an estimate of the cost (the PM shall
be responsible to define estimated cost if not already shown. Note – no estimated cost provided – MR not
processed until estimated cost supplied)
v)
Estimated
cost should be shown as
q
unit
cost per line item if detailed per item
q
or,
a total if for all items in MR
vi)
Allowance
should be made for freight if not detailed on MR – 15% of total cost.
vii)
Item
#’s in Mat Reqs should match Item #’s in Ellipse
viii)
MIR’s
shall be entered as “commitment” and “expenditure”. Information to be supplied by Material
Coordinator.
ix)
Mat
Reqs worksheet should be information should be primary control – not Work
Order.
b) Contracts
i)
Contracts
(awarded) shall be entered into the Contracts worksheet,
and linked to the Workstructure worksheet as a commitment.
ii)
Subsequent
Contract Instructions, FWI’s etc that have a cost impact must be entered into
the Contracts worksheet as a commitment
iii)
All
Contracts, Contract Instructions, FWI’s etc that have a cost impact must be
provided with an estimate of the cost (the PM shall be responsible to define
estimated cost if not already shown)
iv)
Estimated
cost should be shown as total for all items in Contract or Instruction. Line items are not required.
v)
Contracts
worksheet should be information should be primary control – not Work Order.
c) Work Orders
i)
Work
Orders should only be set up in W.O’s worksheet if expenditure not already
recorded in Contracts or Mat Reqs worksheets.
ii)
Work
Orders shall be entered into the W.O’s worksheet, and linked to the
Workstructure worksheet as commitment and expenditure.
iii)
End
of month, expenditure for Labour, Equipment, Material and Other should be
entered into W.O’s worksheet.
2)
Entering
Expenditures
a) Material Requisitions
i)
Material
Requisitions expenditures should be reviewed weekly for any changes.
ii)
Expenditures
shall be entered in Mat Reqs worksheet, and linked to the Workstructure
worksheet.
iii)
Commitments
shall be adjusted to match expenditure when
q all items have been supplied, and
q all costs posted.
Note – Commitments should never be less than
Expenditure. If Expenditure costs exceed
Commitment costs, request PM to revise Commitment value/s.
iv)
Confirm (weekly) that W/O costs match Mat Req’s
costs. Establish reason for any variance
and discuss required actions with Project Manager.
v)
Work Orders that are collecting costs from MR’s
that have all items supplied and costs posted should be closed and
finalised. Prior to closure, posted
costs should be reviewed for any anomalies or double charging.
b) Contracts
i)
Approved
invoices should be entered in the Contracts worksheet, as approved invoices.
ii)
Posted
expenditures should be reviewed weekly for any changes and entered in the
Contracts worksheet, and linked to the Workstructure worksheet. These should match the invoice values.
iii)
Confirm that W/O costs match Contracts costs. Establish reason for any variance and discuss
required actions with Project Manager.
Note – Commitments should never be less than
Expenditure. If Expenditure costs exceed
Commitments, request PM to revise Commitment value/s or issue Contract Variation.
c) Work Orders
i)
Work
order expenditures for Labour, Equipment, Material and Other shall be entered
following month end.
3)
Identify errors, variances and
unauthorized expenditure
a) Material Requisitions
i)
Material
Requisitions expenditures should match W/O costs.
ii)
Material
requisition expenditures should not be duplicated.
iii)
Material
requisition expenditures should be realistic.
b) Contracts
i)
Contract
expenditures should match W/O costs.
ii)
Contract
expenditures should match invoice costs.
iii)
Contract
expenditures should not exceed commitments.
iv)
Contract
expenditures should not be duplicated.
4)
Guidelines and Recommendations
q Material Requisitions expenditures
should match W/O costs.
q Material Requisitions should charge
to W/O’s dedicated to material purchases, and should not collect “other” costs.
q A Work Order can only be entered one
line in the Workstructure worksheet.
q More than one Material Requisition
can charge to one Work Order (Many to one)
q A Material Requisition should not
charge to more the one Work Order (One to many)
q Linking Commitments, Expenditures and
/or forecasts (in Workstructure worksheet) is not permitted.
q Entering the forecast value is the
responsibility of the Project Manager – not the Project Controller.
q Budget vales do not change unless an
APC is approved. If an APC is approved
the Project Manager should confirm adjustment to Budget values.
q Use of the project Contingency will
depend on the Project Manager.